The Twins are interested in keeping him, just not at $12.5 million, which I can understand. He isn't an A or B type reliever, coming off Tommy John surgery in 2010. He had a bit of an up and down year but held batters to a .207/263/.391 line in the second half of the year, with 5 walks and 22 strikeouts in 23 innings.
I'm not sure how big a contract he is expecting, maybe just a year and an option. If he has a good season he could be an Type A or B free agent next year, we could end up with draft pick.
The downside is that he turns 37 next month and we can't be sure he'll be the pitcher he has been in the past. We might sign him and have him turn out to have a season like Jon Rauch's 2010.